Ghana President orders crude oil payments in local currency

President John Mahama has directed a review of Ghana’s crude oil payment system, ordering that domestic refineries pay for locally produced crude in Ghana cedis rather than US dollars. This policy shift aims to reduce pressure on the local currency and lower transaction costs. Currently, legal frameworks require payments for crude, including Jubilee Medium Sweet, to be made in foreign currency. The move follows a similar initiative in Nigeria designed to strengthen local currencies.

Separately, President Mahama stated that the cedi is “long overdue for refreshing” regarding its security features. He argued that periodic updates to banknote designs are necessary to combat increasingly sophisticated counterfeiting techniques. While the President noted that the Bank of Ghana is responsible for the timing and implementation of any currency refresh, he emphasized that such an update would focus on security measures rather than a redenomination of the currency's value.